Global Supply Chain Harvard Case Solution & Analysis

Introduction

            Due to the increased globalization and the desire to meet the satisfaction of the end consumers around the world, a complex distribution network has been established whose aim is to provide the product at the right time and at the right place. Along with this, the company also needs to ensure that the product shall be reached at its desired destination at a right price in order to lower the overall cost. Therefore, a network of global shipping has been introduced which is driven by innovation to ship the products globally in order to meet the customers’ needs(Kresten, Blecker, & Herstatt, 2007).

            In today’s world, the easiest of the work is to introduce a unique idea which surfaces in the global arena, but fails to make an impression in the eyes of customers. Many products fail because the business idea failed to deliver the required expectation from customers. The implementation of supply chain has been the most complex of factors because of which new start-ups often fail. Through global chain network, the end product of the company reaches at the hand of the end consumers through many channels and distribution networks(Blecker, 2014).

            The heart of supply chain management is its transportation mode which allows the goods to transport from one destination to another. Therefore, transportation through shipments have been the natural sites for the transportation of goods and have played a role as being the link between the maritime and that of inland transport. The concept of containerization is considered as one of the biggest innovation which has transformed the economies of scale shipping which has impacted the commercial world of shipment, and that the economy of the world(ZongWei, 2012).

            Before the concept of containerization had been introduced in the world, the cost of the products along with its freight had increased to a substantial amount which ultimately increased the end prices of its products. Before the initialization of the concept, 70% of the cost of the product had been incurred due to the increased cost of maritime shipment. Furthermore, the risks of theft, damages, and factors were exposed in the maritime shipment before the introduction of the concept because the handling of these products were not taken care with extreme fragility(Kresten, Blecker, & Herstatt, 2007).

            It can be said containerization has shaped the modern supply chain network sue to its low-cost feature, as companies around the world have been competing to provide low-cost end product to its customers. The direct and indirect cost in one country differ widely to another country which makes it difficult to compete in the global arena in the supply of the end products. Therefore, companies are bound to introduce economies of scale and to gain profitability through the production of large sum of products(Kresten, Blecker, & Herstatt, 2007).

Hence, the support of containerization have further decreased the cost of products through bulk supplying. Along with this, the product could easily be tracked using the product and shipment code which is received while shipping the product. Although, it has also posed a disadvantage that many of the countries do not have a port, while the product is shipped in the nearest of the ports and then transported through different in-land transportation(Blecker, 2014).

The product Lifecycle has become increasingly small in the modern era due to the reduction in the amount of time the company earns as a result of first-mover advantage. Therefore, in the shorter period of time companies need to provide products to their end consumers at a small amount of time before the product enters in to the decline phase. Since long, companies have been finding ways to increase the growth period of the product where revenues start to come flawlessly to the company and the product becomes popular in the midst of its consumers(Blecker, 2014).Global Supply Chain Case Solution

Shipment of products in a quick succession has prolonged the life of the product where it reaches to various customers at a same time. The revenues of companies have greatly increased which has allowed them to further invest in Research and Development along with innovation to enhance their product features and to better fulfill the needs of its customers(ZongWei, 2012). For every successful business, there has always been a factor of strong implementation of global supply chain network. It has always been debated that an important factor is the reach of the company’s products in the hands of its customers(Blecker, 2014). .............................

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